Tunisia: Investing

FDI in Figures

FDIs currently represent 10% of productive investments, generate one third of the exports and 15% of the total number of jobs. According to the 2013 World Investment Report, Tunisia is among the top 15 destinations for FDI flows in Africa. After a decline in the recent years due to the global recession, the country's socio-political revolution and the crisis in the euro zone, FDIs recovered in 2012, growing by 79% compared to 2011. In 2013, they fell by 24%. The government is hoping for a recovery in foreign investment with the help of the new Investment Code and the tax decisions it contains.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment

2011

2012

2013

FDI Inward Flow (million USD)

1,148

1,603

1,096

FDI Stock (million USD)

31,366

33,406

33,557

Performance Index*, Ranking on 181 Economies

76

-

-

Potential Index**, Ranking on 177 Economies

86

-

-

Number of Greenfield Investments***

40

31

18

FDI Inwards (in % of GFCF****)

11.5

15.4

10.0

FDI Stock (in % of GDP)

68.2

74.0

70.7

Source:
UNCTAD
- Last Available Data.

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

Why You Should Choose to Invest in Tunisia

Strong Points

The country's credit-worthiness guarantees its access to international capital markets. The growing diversification of the economy reinforces its resistance to economic crises. Tunisia enjoys a strategic location on the Mediterranean. Tunis is on average, at a 2 hour flight from the major European capitals. A well developed social system and an ambitious education policy aim to reduce the social cost of adjustment and to reinforce the modernization of the country. Tunisia has a qualified, productive workforce at competitive salary levels.

In addition, the 2007 Finance Law, together with measures in favor of technological innovation and economic competitiveness, provide a very favorable environment for SMEs. Two tools were created at the end of 2006 in order to facilitate the emergence of new companies, the Bank of financing Small and Medium Enterprises (BFPME) to finance innovative projects, and the Tunisian Guarantee Company (SOTUGAR) to reassure backers and guarantee the profitability of projects.

Weak Points

Bureaucracy.

Government Measures to Motivate or Restrict FDI

Over the last few decades, Tunisia has chosen to liberalize its economy even more and to integrate it in the world economy. The list of measures established by the government to encourage FDI is available on the Foreign Investment Promotion Agency (FIPA) website.